U.S. Session Forex Recap – June 30, 2015

  • US pending home sales: 0.9% vs. 1.4% expected, 2.7% previous
  • CA raw materials price index: 4.4% vs. 4.5% expected, 4.0% previous
  • CA industrial product price index: 0.5% vs. 0.3% expected, -0.9% previous
  • S&P cuts Greece’s credit rating from CCC to CCC- with negative outlook
  • NZ building permits stays flat vs. -1.7% previous
  • AU private sector credit, JP housing starts and average cash earnings on tap

Forex price action was a mixed bag of nuts, as investors priced in their optimism and/or took profits ahead of Greece’s closely-watched debt deadline.

The euro was in focus yesterday as it strengthened across the board despite the lack of progress in Greece. In fact, yesterday’s headlines included the S&P cutting Greece’s credit rating from CCC to CCC- and raising the possibility of a Grexit to 50% and Greek PM Tsipras talking about how Greece would survive without a euro zone bailout package. Yikes!

Still, some analysts attribute the euro’s strength to traders squaring off their short euro positions ahead of the debt deadline, while others say the move was due to investors believing that a last-minute deal would be made and the Swiss National Bank (SNB) possibly intervening to prop EUR/CHF higher.

In any case, yesterday’s U.S. session trading boosted the euro against its major counterparts. EUR/USD climbed by 136 pips (+1.22%) to 1.1244 while EUR/JPY gained 119 pips (+0.88%) to 137.73. Similar gains were seen in EUR/GBP, which rose by 72 pips (+1.02%) to .7147 and EUR/CHF, which ended the session 35 pips higher (+0.34%) than its open price.

The rest of the major currencies were all over the charts and didn’t show any moves as cohesive as the euro’s. The comdolls, especially, had a mixed day even though the PBoC had cut BOTH its RRR and interest rates over the weekend.

AUD/USD clocked in a 32-pip gain (+0.42%) to .7687 while NZD/USD popped up by 25 pips (+0.37%) to .6861.

The Loonie wasn’t as fortunate, as its traders focused on sliding oil prices instead of Canada’s strong raw materials and industrial product price indices. USD/CAD gained 35 pips (+0.28%) to 1.2391 while CAD/JPY slid by 65 pips (-0.65%) to 98.85.

Will Asian session forex traders extend the euro’s gains? The only reports on the docket include New Zealand’s building permits (which came out flat), Australia’s private sector credit, and Japan’s housing starts and average cash earnings numbers. These reports don’t usually cause sustained impact on their respective currencies, so keep a closer eye on news bits that might influence risk appetite. More specifically, stay glued to the tube for any updates on Greece’s debt drama!

See also:

London Session Recap

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